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Friday, 18 January 13
NEWLEAD HOLDINGS LTD. TO ACQUIRE TWO COAL PROPERTIES WITH ESTIMATED COAL RESERVES OF 18.6 MMT & 143.1 MMT
 NewLead Holdings Ltd. Announces Signing Agreement to Acquire Properties with Estimated Coal Reserves of 18.6 Million Tons; Signing Agreement to Acquire Properties with Estimated Coal Reserves of 143.1 Million Tons and Securing 3-year Coal Supply Contracts Expected to Generate $873.5 million of Revenue
NewLead Holdings Ltd., is an international, vertically integrated shipping and commodity company that manages product tankers and dry bulk vessels, yesterday announced that the Company has entered into an agreement to acquire title and excavation rights in properties containing 18.6 million tons of estimated coal reserves for $11.0 million.
According to a press release posted on Company’s website, NewLead also entered into an agreement to acquire ownership and leasehold interests in properties containing approximately 143.1 million tons of coal for $55.0 million. Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "We have expanded our recently launched commodities business with the agreement to acquire an estimated 18.6 million tons of coal reserves. We are in the process of acquiring additional coal properties with reserves estimated at approximately 143.1 million tons. Once we have acquired all of the assets, our coal reserves will consist primarily of sub bituminous B coal, which is 13,500 BTU with low sulfur. We will also have 'Blue Gem' and 'Rich Mountain' seams of coal, highly sought after in the international market. We believe that our international shipping expertise will allow us to exploit the demand for these coal reserves."
Michael Zolotas continued, "In entering the mining business, we undertook to secure supply contracts for the coal reserves. Consequently, we entered into two agreements to supply coal to third parties. These agreements are expected to generate $873.5 million of revenue over a three-year period. Based on our projections of operating costs, we believe that these sales will have healthy margins and will generate significant cash flow with which to fund continued growth. We intend to supplement the supply agreements by allowing contract miners to mine and pay us a royalty for coal removed."
Coal and Natural Gas Reserve Acquisitions
As of December 28, 2012, NewLead entered into an agreement to acquire title and mineral excavation rights to 5,000 acres of land in Kentucky. The coal reserves in these properties are estimated to be approximately 18.6 million tons. The transaction is subject to execution and delivery of certain definitive agreements and other closing conditions, but is currently expected to close by January 29, 2013. There can be no assurance that the transaction will be consummated. The consideration of $11.0 million was paid in the form of notes maturing on January 29, 2013. The notes do not accrue interest, but remain subject to a guaranty by the initial purchaser and are secured by a mortgage lien and a security interest in the assets being purchased.
NewLead has also entered into an agreement to acquire ownership and leasehold interests in 18,335 acres in Tennessee containing coal and natural gas and other natural resources. The agreement contemplates that the Company will acquire rights, title, permits and leases to coal mines with total reserves estimated at 143.1 million tons. The transaction is subject to execution and delivery of certain definitive agreements and other closing conditions, but is currently expected to close in February 2013. There can be no assurance that the transaction will be consummated. The agreement contemplates that consideration of $55.0 million shall be payable in cash in two installments; $30.0 million at closing and the remaining $25.0 million on the first anniversary of the closing.
The estimated reserves stated above are as determined by independent appraisals. The methodology used by the independent appraisers was not compliant with the methodology required by the Securities and Exchange Commission ("SEC") in reserve reports and, accordingly, should not be relied upon. Such reserve information is only provided to give the best currently available information. NewLead is undertaking to obtain reserve reports that comply with SEC methodology. Such reports may differ materially from the information provided herein.
The properties in Tennessee and Kentucky also include natural gas wells and projects relating to extraction of timber, sand, gravel, fly ash and dimension stone. Third parties are currently extracting these commodities on the properties and paying royalties.
Coal Supply Contracts
NewLead signed two coal supply contracts with creditworthy counterparties for the sale of coal to such parties. Annual revenue from these two contracts is expected to be $184.7 million in the first year, $318.4 million in the second year and $370.4 million for the third and final year.
The first contract provides for the sale of 70,000 tons of coal per month for the first 12 months (840,000 tons annually), increasing to 140,000 tons per month for the second year (1.68 million tons annually) and 210,000 tons per month for the third year (2.52 million tons annually). All tonnage is subject to a variation of 5%. The price was established based on the prevailing market price for coal at the time the contract was entered into.
The second contract provides for the sale of 130,000 metric tons per month for the first 12 months (1.56 million metric tons annually), increasing to 210,000 metric tons per month for the second and third years (2.52 million metric tons annually). All tonnage is subject to a variation of 5%. The price was established based on the prevailing market price for coal at the time the contract was entered into.
NewLead intends to source the coal to meet such contracts from the estimated reserves discussed above, but to the extent it is unable to do so, it will be required to seek to source the coal from other suppliers at the prevailing prices.
Management Company
NewLead also entered into an agreement to acquire a local coal mining management company in exchange for compensation, paid in the form $3.0 million in common shares of NewLead and a warrant for $6.4 million in common shares of NewLead. Such acquisition is subject to a number of terms and conditions and there is no assurance it will be consummated. The management company shall be responsible for managing the daily operations of the coal mines and the excavation of the coal from the properties.
For more details please visit www.newleadholdings.com.
Source: NewLead Holdings
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Friday, 07 December 12
A NEW PHASE FOR AUSTRALIAN RESOURCES - A FITCH STREET INTERVIEW
This week Matt Jamieson spoke with Andrew Colquhoun in Fitch's Asian sovereign rating team, and Vicky Melbourne, Fitch's commodity analyst based i ...
Friday, 07 December 12
SHIPPING INDUSTRY LOOKING ON YET ANOTHER TOUGH YEAR AS WE APPROACH 2013 - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With shipping finance "on the ropes" as traditional lenders appear to be cutting their losses and tonnage oversupply still the most import ...
Thursday, 06 December 12
PANAMAX : THE POSITIVE VIBES IN THE ATLANTIC REMAINS - FEARNLEYS AS
Handy
The Atlantic market is still depressed with dearth of cargoes and more ships. The trips from Continent to Feast fixed around USD 12k. Trips f ...
Thursday, 06 December 12
STRONG CHINESE DEMAND FOR DRY BULK COMMODITIES EXPECTED FOR 2013 - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A new analysis from BIMCO released yesterday suggests that 2013 is expected to be a stronger year in terms of China's "hunger" for commod ...
Tuesday, 04 December 12
JATENERGY SIGNS MOU FOR INDONESIAN COAL ASSET
COALspot.com - Jatenergy Limited has announced that its fully-owned Indonesian subsidiary, PT Barata Energy (BE), has signed an exclusive, non-bindi ...
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- Merrill Lynch Commodities Europe
- Bukit Asam (Persero) Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Madhucon Powers Ltd - India
- Meralco Power Generation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indonesian Coal Mining Association
- Parry Sugars Refinery, India
- CNBM International Corporation - China
- Holcim Trading Pte Ltd - Singapore
- Agrawal Coal Company - India
- Minerals Council of Australia
- Australian Commodity Traders Exchange
- Banpu Public Company Limited - Thailand
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- Larsen & Toubro Limited - India
- Simpson Spence & Young - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Chamber of Mines of South Africa
- Coalindo Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Global Coal Blending Company Limited - Australia
- Posco Energy - South Korea
- Central Java Power - Indonesia
- San Jose City I Power Corp, Philippines
- Grasim Industreis Ltd - India
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Bulk Trading Sa - Switzerland
- Miang Besar Coal Terminal - Indonesia
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Baramulti Group, Indonesia
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Indo Tambangraya Megah - Indonesia
- Rio Tinto Coal - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- ASAPP Information Group - India
- Karaikal Port Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- Ind-Barath Power Infra Limited - India
- Pendopo Energi Batubara - Indonesia
- New Zealand Coal & Carbon
- Wilmar Investment Holdings
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Orica Mining Services - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- OPG Power Generation Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Electricity Generating Authority of Thailand
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- White Energy Company Limited
- Africa Commodities Group - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhushan Steel Limited - India
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- Jindal Steel & Power Ltd - India
- Price Waterhouse Coopers - Russia
- Essar Steel Hazira Ltd - India
- Anglo American - United Kingdom
- Siam City Cement PLC, Thailand
- Kapuas Tunggal Persada - Indonesia
- GVK Power & Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
- SN Aboitiz Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Kepco SPC Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Cement Manufacturers Association - India
- Indian Energy Exchange, India
- Formosa Plastics Group - Taiwan
- Riau Bara Harum - Indonesia
- Latin American Coal - Colombia
- Straits Asia Resources Limited - Singapore
- Bhoruka Overseas - Indonesia
- Indogreen Group - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bukit Baiduri Energy - Indonesia
- Thiess Contractors Indonesia
- Mintek Dendrill Indonesia
- Kobexindo Tractors - Indoneisa
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- GN Power Mariveles Coal Plant, Philippines
- PowerSource Philippines DevCo
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Independent Power Producers Association of India
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Ministry of Finance - Indonesia
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- London Commodity Brokers - England
- Standard Chartered Bank - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Aboitiz Power Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- The Treasury - Australian Government
- Tamil Nadu electricity Board
- Aditya Birla Group - India
- Power Finance Corporation Ltd., India
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- Sical Logistics Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jaiprakash Power Ventures ltd
- Economic Council, Georgia
- Energy Development Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Siam City Cement - Thailand
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Videocon Industries ltd - India
- PNOC Exploration Corporation - Philippines
- Ministry of Transport, Egypt
- Rashtriya Ispat Nigam Limited - India
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Renaissance Capital - South Africa
- Xindia Steels Limited - India
- Port Waratah Coal Services - Australia
- Maharashtra Electricity Regulatory Commission - India
- Makarim & Taira - Indonesia
- Directorate Of Revenue Intelligence - India
- European Bulk Services B.V. - Netherlands
- LBH Netherlands Bv - Netherlands
- Maheswari Brothers Coal Limited - India
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
- Eastern Energy - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
- Bharathi Cement Corporation - India
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Goldman Sachs - Singapore
- Kartika Selabumi Mining - Indonesia
- Georgia Ports Authority, United States
- The University of Queensland
- Medco Energi Mining Internasional
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Toyota Tsusho Corporation, Japan
- Globalindo Alam Lestari - Indonesia
- Romanian Commodities Exchange
- Cigading International Bulk Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- Chettinad Cement Corporation Ltd - India
- Bangladesh Power Developement Board
- Marubeni Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- Trasteel International SA, Italy
- GMR Energy Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Vijayanagar Sugar Pvt Ltd - India
- PTC India Limited - India
- Kaltim Prima Coal - Indonesia
- Interocean Group of Companies - India
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Petrochimia International Co. Ltd.- Taiwan
- Petron Corporation, Philippines
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Metalloyd Limited - United Kingdom
- Lanco Infratech Ltd - India
- Therma Luzon, Inc, Philippines
- Bhatia International Limited - India
- Bukit Makmur.PT - Indonesia
- McConnell Dowell - Australia
- Mercuria Energy - Indonesia
- Global Business Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- AsiaOL BioFuels Corp., Philippines
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- Ministry of Mines - Canada
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